Tag: Executive

CategoriesDefense

Cybersecurity for Government Contractors

Posted on September 20, 2022

Cybersecurity has become one of the most important concerns for companies of all sizes, and for good reason. A data breach can not only be financially devastating but can also damage your organization’s reputation. However, there is an additional risk for government contractors, as sensitive government data is often involved. Therefore, contractors must take extra precautions to ensure that their cybersecurity protocols are up to date.

The General Services Administration (GSA) manages numerous  IT security programs, which help government agencies implement IT policies. These policies promote public safety and enhance the resiliency of the government’s systems and networks. Also, several federal agencies, including the Department of Defense (DoD) and the National Aeronautics and Space Administration (NASA), have issued acquisition regulations that impose new cybersecurity requirements on contractors. Below are the top five requirements with which your organization should be familiar: 

1. FAR 52.204-21 – Basic Safeguarding of Covered Contractor Information Systems 

2. DFARS 252.204-7012 – Safeguarding Covered Defense Information and Cyber Incident Reporting 

3. NIST 800-171 – Protection of Controlled Unclassified Information 

4. CMMC Model – Cybersecurity Maturity Model Certification 

5. Executive Order (EO) 13800 – Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure 

Each of these requirements is discussed in more detail below: 

1. FAR 52.204-21 – Basic Safeguarding of Covered Contractor Information Systems 

The FAR 52.204-21 regulation requires contractors to put basic security measures in place to protect the confidentiality, integrity, and availability of Controlled Unclassified Information (CUI)/Covered Defense Information (CDI) stored on their information systems. Some security measures include multi-factor authentication, least privilege principles, and physical security controls. 

2. DFARS 252.204-7012 – Safeguarding Covered Defense Information and Cyber Incident Reporting 

The DFAR Clause 252.204.7012 regulation requires contractors to take additional steps to safeguard CUI/CDI, including implementing a plan for detecting, reporting, and responding to cybersecurity incidents. This regulation also requires contractors to have a written information security program that includes specific security measures and procedures. 

3. NIST 800-171 – Protection of Controlled Unclassified Information 

The NIST 800-171 regulation is a set of security standards that contractors must meet to protect CUI/CDI. These standards cover access control, incident response, and system documentation. 

4. CMMC Model – Cybersecurity Maturity Model Certification 

The Cybersecurity Maturity Model Certification (CMMC) is a new cybersecurity framework that will soon be required for all DoD contractors. This framework consists of five levels of maturity, each with its own set of requirements. Contractors must earn certification at the appropriate level to bid on specific contracts. 

5. Executive Order (EO) 13800 – Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure 

EO 13800 requires federal agencies to improve the cybersecurity of their networks and critical infrastructure. This includes risk assessments, incident response plans, and cyber threat information sharing. While this Executive Order does not directly apply to contractors, it is vital to be aware as it will likely indirectly impact how contractors do business with the government. 

Tips for Meeting Contractor Cybersecurity Requirements

  • Get certified and accredited. Certification is essential in demonstrating to the government that your organization is serious about cybersecurity. The most common certification for contractors is the ISO 27001 standard. 
  • Limit access to those with a need-to-know. One of the best ways to protect CUI/CDI is to limit its access. Make sure that only those who absolutely need access to CUI/CDI have it and only have access to the specific information they need. 
  • Implement strong security controls. Strong security controls are essential for protecting CUI/CDI. This includes multi-factor authentication, least privilege principles, and physical security controls. 
  • Have a plan for incident response. In the event of a cybersecurity incident, it is crucial to have a plan in place for how to respond. This plan should include containment, eradication, recovery, and communication steps. 
  • Stay up to date on new requirements. The landscape of contractor cybersecurity is constantly changing, so it is essential to stay current on new requirements. One way to do this is to sign up for updates from the Center for Internet Security (CIS).

As a government contractor, cybersecurity should be one of your top priorities. If sensitive government data falls into the wrong hands, the consequences could be disastrous – not just for your business, but also for national security. By ensuring your systems are certified and accredited, that access is strictly limited to those with a need-to-know, and that vulnerabilities are promptly remediated, you can help protect yourself against cyberattacks and maintain compliance with government regulations.

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CategoriesDefense

8 Things Contractors Need to Know About the Government Contractor Defense

Posted on September 20, 2022

There are several unique defenses available to government contractors facing product liability lawsuits. One of the most common defenses is the “government contractor defense,” which protects private contractors from specific liability claims when they do business with the U.S. government. The two primary forms of defense are a common law defense and a statutory defense, also known as the SAFETY Act. 

1. Components of defense.   

In the landmark case Boyle v. United Technologies Corp., 487 U.S. 500, 512 (1988), the Court recognized the following three components of the government contractor defense: (1) the United States approved reasonably precise specifications for the product being supplied; (2) the product conformed to those specifications; and (3) the supplier warned the United States about any dangers in use of the product known to the supplier but not known to the United States. 

Typically, the government contractor defense applies to design-defect claims, failure to warn claims, and breach of warranty claims. However, it generally does not apply to manufacturing defect claims. How state law defines a suit determines whether the defense can be used. 

2. Other claims in which the government contractor defense may be applied. 

Although many courts uphold that the government contractor defense can be applied to contracts for both military and nonmilitary equipment, some courts rule that defense only applies to cases involving military equipment. Additionally, courts have applied defense to claims about supply contracts, subcontracts, and service contracts. 

3. There are similar defenses for state and local procurement. 

While Boyle does not recognize cases involving an underlying state or local government contract, some jurisdictions have applied similar defenses to product liability claims. 

4. The government contractor defense can provide an independent basis for removal. 

One valuable benefit of claiming the defense is that it can provide an independent basis for removing a case to the federal government.   

5. Develop the defense before litigation.

Before any litigation arises, contractors should lay the groundwork for the defense. Start by reviewing the contracts to ensure that the functions and aspects of the designs are accurately noted within the contract documents. Furthermore, when establishing a defense, it is vital to understand that the extent to which the government was involved in approving specifications will play a huge role. 

When possible, obtain written confirmation from the government that the final product (or service) conforms with the government’s specifications. Lastly, contractors should always document their efforts to warn the government of any identified hazards or dangers associated with the product.

6. Establishing the defense may lead to requests for discovery. 

Asserting the government contract defense requires an in-depth analysis of contract specifications and the government’s role in the approval process of such specifications. This evaluation may elicit unique concerns for discovery. During the Rule 26(f) discovery conference, all issues should be discussed in the appropriate protective order.

7. Establishing the defense could mean going to trial. 

Because facts intensely drive the defense, it typically does not fit the qualifications for a dispositive motion. It is treated as a liability defense rather than an “immunity.”

8. There are other defenses available to government contractors.

Contractors may access other defenses, including Westfall immunity, the combatant activities exception, the political question doctrine, and various potential statutory defenses. 

References

  1. 63A Am. Jur. 2d Products Liability §§ 1347-1389 (2018).
  2. 6 CFR Part 25. Regulations Implementing the Support Anti-terrorism by Fostering Effective Technologies Act of 2002. (the SAFETY Act).
  3. Boyle v. United Technologies Corp., 487 U.S. 500 (1988). 9 September, 2018.
  4. Brian Sheppard, Annotation, The Government Contractor Defense to State Products-Liability Claims, 53 A.L.R.5th 535 (2018).
  5. Department of Homeland Security. Safety Act for Liability Protection. DHS, Washington, DC: 2016.
  6. National Contract Management Association. 2016 Annual Review of Government Contracting. NCMA, Ashburn, VA: 2017.

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CategoriesGeneral

8 Reasons Why Most Contractors Fail

Posted on August 24, 2022

Almost every businessperson aspires to one day secure a federal government contract. After all, the federal government is the world’s largest purchaser of goods and services. Securing a piece of this pie would be a major accomplishment. But unfortunately, most businesses that contract with the federal government fail. In fact, according to recent reports, approximately 50% of all small businesses that contract with the federal government will go out of business within the first two years. So what’s the reason for this high failure rate? And more importantly, what can you do to avoid it? This blog post will explore the top 8 reasons federal contractors fail and how you can prevent them.

NAICS Codes Mixups

One of the most common reasons a small business fails as federal contractor is because they mix up their North American Industry Classification System (NAICS) codes. The government uses NAICS codes to classify companies according to their size and work type.

If you want to contract with the government successfully, you must ensure you’re using the correct NAICS code for your business. The proper NAICS code is vital because the government uses it to determine whether or not your business is eligible for specific contracts. If you use the wrong code, you could be inadvertently excluded from bidding on particular contracts.

To avoid this mistake, take the time to research the correct NAICS code for your business and make sure you’re using it correctly. Generally, a primary NAICS code with secondary ones can be applied. You can use the SBA’s NAICS Code Lookup tool to find the correct code for your business. Furthermore, obtaining an accurate primary NAICS code is vital because it can significantly affect the amount of money you make over the next three years.

Misunderstanding of the RFP Process

Another common reason federal contractors fail is that they misunderstand the Request for Proposal (RFP) process. The RFP process is when the government solicits bids from contractors and selects a contractor to award a contract.

Contrary to popular belief, the RFP process is not a “race to the bottom.” In other words, the government is not necessarily looking for the lowest bid. Instead, they are looking for the best value. Therefore, the government will evaluate all proposals based on several factors, including price, technical approach, and experience. To increase your chances of success, you must take the time to understand the RFP process and what the government is looking for.

Many contractors see the dollars set to be awarded rather than paying attention to the scope of the work. For example, if the government is only willing to pay $500,000 for a project, but your company requires $750,000 to complete it, then you need to re-evaluate whether or not bidding on the contract is a wise decision. Pursuing high-value contracts can only benefit if a contractor can win and perform. 

Lack of Past Performance

One other common reason federal contractors fail is that they lack past performance. Past performance is “the extent to which a contractor has satisfactorily performed similar work on previous contracts.” In other words, it’s a way for the government to gauge whether or not a contractor is likely to complete a project.

The government puts a lot of emphasis on past performance when awarding contracts. As a result, many government agencies will not even consider contractors with no past performance. There are a few ways you can overcome this obstacle. First, you can team up with another contractor with relevant past performance. This will increase your chances of being awarded the contract. Second, you can offer to do the work on a time-and-materials basis. This means that you will only be paid for the work you complete. Once you start winning contracts and building up your past performance, you’ll be in a much better position to win larger contracts.

Not Focusing on the Customer’s Needs

When it comes to federal contracting, the customer is always the government. So to be successful, you need to focus on your customers’ needs and ensure that you’re meeting their requirements.

One common mistake contractors make is assuming they know what the government wants. This can lead to a lot of problems down the road. Therefore, it’s essential to take the time to understand the customer’s needs and ensure that you can meet them.

Not Following up After the Submission of a Proposal

After you submit a proposal, it’s important to follow up with the government. This is often done through what’s called a debrief. A debrief is when the government sits down with you and tells you why you didn’t win the contract.

It’s necessary to take the time to attend these debriefs. They can be beneficial in understanding what the government is looking for and how you can improve your proposal for future opportunities.

Additionally, it’s crucial to maintain contact with the government even if you don’t win the contract. These contacts can be handy down the road when trying to win future contracts.

Failing to Understand the Acquisition Process

The federal contracting process is very complex, and there are a lot of rules and regulations that you need to follow. If you don’t understand the acquisition process, it will be challenging to win a contract.

One way to overcome this is by working with a professional who understands the acquisition process. They can help you navigate the complexities of the process and increase your chances of winning a contract.

Another way to learn about the acquisition process is by reading the Federal Acquisition Regulation (FAR). The FAR is a document that outlines all the rules and regulations that you need to follow when contracting with the government.

Not Having a Solid Marketing Strategy

To be successful in federal contracting, you need to have a solid marketing strategy. This strategy should include various methods for marketing your company to the government.

Some standard methods for marketing your company include attending trade shows, exhibiting at conferences, and writing articles for trade publications. Additionally, you can also create a website that’s specifically designed for government contracting.

If you don’t have a solid marketing strategy, it will be tough to win contracts. You must ensure you’re doing everything possible to market your company and get your name out there.

Failing to Manage Expectations

When it comes to federal contracting, it’s essential to manage expectations. This means setting realistic goals for your company and understanding what the government is looking for.

If you set unrealistic goals, it’s going to be very difficult to meet them. This can lead to a lot of problems down the road. So it’s important to sit down and realistically assess your company’s capabilities before setting any goals. Additionally, it would be best to understand what the government is looking for. This way, you can ensure that you meet their requirements and give them what they want.

These are just a few of the most common reasons federal contractors fail. If you can avoid making these mistakes, you’ll be in a much better position to win contracts.

Do you have any other tips for federal contractors? Share your thoughts in the comments below. 

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CategoriesBusiness DevelopmentCaptureGeneralProposal

To Bid or Not to Bid: How to Make the Best Decision

Posted on August 13, 2022

Have you ever thought about how many decisions you make each day? From the clothes you choose to wear to what you eat for lunch or whether or not you feel like making it to the gym, each day requires us to make multiple decisions, and sometimes it can be exhausting to be caught between two very viable options. Luckily in those moments, choosing to get takeout or cooking the groceries from the fridge isn’t typically a big deal. However, when it comes to deciding whether or not to bid on a specific government contract, the stakes are much higher.

Businesses cannot afford to be indecisive when choosing which projects deserve the time and resources necessary to prepare a competitive bid properly. Many contractors aim to bid for every opportunity they can, but this is unwise. Instead, there should be a sense of proportionate balance, primarily depending upon your resources. 

Given the free access to government bids, finding many available opportunities will not be a problem. The ultimate challenge is deciding which opportunities align and make sense to invest time, effort, and money. One or more team members will spend days, if not weeks, drafting a presentable proposal. Therefore, businesses should adhere to a focused approach when deciding on which government projects to bid. This guide to bidding lays out the specific issues you should prioritize to make an informed decision. 

Assess the Eligibility Criteria

Search a government contracts database to find relevant opportunities. First, make a shortlist of those that you think are most lucrative and suitable for your business. Now, assess the eligibility criteria of each of these shortlisted opportunities. 

1. Type of Business

It is not unusual for the government, Federal or local, to invite proposals from certain types of businesses. This may pertain to the kind of incorporation, nature of ownership, size of the enterprise, and a combination of several factors. Accordingly, the proposal issuer may declare a preference for specific types of businesses. 

If you find that the type of business you own is not suitable for the contract, then it is pointless to pursue the opportunity any further; it should not find its way to your ultimate shortlist.

2. Company Profile

Government contracts may stipulate necessary experience or years in business, expertise or specializations, specific locations, and other company profile elements. Many opportunities require firms to operate certain types of facilities. This is not limited to factories and warehouses. Such criteria may also include stipulations regarding office spaces, logistics, supply chain, and transportation. 

Your company profile should perfectly fit an opportunity and its requirements. If you’re missing any criteria, then bidding on that opportunity may not yield any gain. Remember, some of your competitors will fulfill and exceed the requirements, creating a scenario unsuitable for you to engage in competitive bidding. 

3. Quality of Product or Service

You may have the most refined quality product or service, yet it may not be suitable for the government. Distinct government departments have their ways of assessing quality. If an RFP explicitly describes specifications or features you do not entirely satisfy, stop considering that contract and move on to the next available opportunity. 

In some cases, you may be able to tweak your product or service to meet the quality requirements of the government. First, conduct a cost-benefit analysis to bring about such changes, and then decide if bidding for the opportunity is viable for you in the immediate or foreseeable future. 

4. Deliverable Prerequisites

An RFP may necessitate a strict turnaround time, and the frequency of deliverables may not suit your operations. In addition, there may be other such prerequisites that you fail or may fail to fulfill. For example, the government might demand around-the-clock support for a service, and your company doesn’t provide this. Therefore, do not bid for the contract if you cannot meet the RFP, deliverable schedule, or terms.

Most businesses have to tweak their operations to some extent to be able to bid for government contracts. It would be best if you weighed the pros and cons of such adaptive measures. If the changes appear sustainable, you can undoubtedly modify them accordingly and bid for a lucrative project. 

5. Compliance and Certifications

Scan any government contracts database, and you will find that most RFPs require at least a few certifications. Unfortunately, the compliance standards for government contracts can be steep and costly to uphold. However, every business interested in dealing with the Federal government must secure necessary certifications and should fulfill all compliance requirements. 

Securing required certifications takes time. If you try to comply and get certified while your proposal is being drafted, you may miss the closing date. Deadlines for government contracts may get extended, but you cannot take that possibility for granted. Instead, choose government projects for which you are entirely eligible to bid. 

Assess the Competition

You must assess your competition to know the odds of winning. It is not only about expertise, experience, production capacity, and service deliverability. For example, some businesses in your niche may be more familiar with government contracts. As a result, their RFP responses might be more compelling. 

A great way to access the competition is through contract award information which enables you to comprehensively understand the bids that have been won recently. You can use this data to decide on an offer with a greater chance of winning. In addition, competitive intelligence can provide insight into the types of competitors with which you are likely to wrestle, their strengths and weaknesses, and their core expertise and experience.

Assess the Viability 

Free access to government bids empowers all qualifying vendors; businesses can bid simultaneously for multiple projects. A contractor may spend enormous time, immense effort, and a lot of money during the bidding process. Failing to win the bids can result in a tremendous loss of resources. Winning a bid without considering the ramifications can also lead to a massive loss. 

You should ascertain if your business can deliver what the government requires. Conduct a viability study based on how you run your business. Ask practical questions to assess the ground reality. Can you secure a sustainable profit with your bid? What changes will you have to invest in to deliver the goods or services? Does the contract complement your current business plan and company policies? 

A thorough government bid search will lead you to various types of projects. Quite a few in your industry will have lenient prerequisites. Some contracts are not long-term. There could be one-off procurements of goods or services. You have to choose government projects on which to bid that are organically suitable for your business. 

The Smart Approach to Choosing Government Projects to Bid

G2Xchange can help you to navigate the massive and complex federal marketplace. Utilize competitive intelligence and leverage contract award information to find facts that will help you showcase your brand as the most suitable vendor for the government. Then, prioritize these bids and direct all your extra resources to draft a winnable proposal. 

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CategoriesGovernment Contracting 101

How to Ensure Your Company is Poised for Success in the Federal Marketplace

Posted on July 27, 2022
Team celebration for winning a government contract award

The Federal Government spends an average of $500B a year on products and services, providing business owners with the fuel and opportunity they need to make a difference in this country. However, many companies enter unchartered territory when they step into the Federal marketplace, ill-equipped to work in the arena of Government contracting. Many businesses are not prepared to enter the government contracting space because the Federal Government is very different from typical commercial customers. The Federal marketplace is unique and can be intimidating for business owners unfamiliar with the complex set of regulations and processes. However, once a company has navigated its way into the market, it can be a highly lucrative and reliable revenue stream. 

After your business has registered for an account on SAM.gov, acquired a UEI number, and identified relevant NAICs codes, here are five tips to further expand your business into Government contracting:

1. KNOW WHAT YOU OFFER

It is vital to pinpoint your business’s unique expertise, and understand how the Federal Government refers to your company’s products or services. Discovering the keywords and terminology used in the industry will help you establish communication tools such as a marketing plan, which will include your business’s solution offering and a capability statement. These tools will accurately inform Federal customers how your products or services will be a solution to their needs.

2. TRACK OPPORTUNITIES

The Federal Government sales cycle is slow, and therefore it’s best not to make your company’s sole focus one specific opportunity. Successful Government contractors target and pursue multiple potential contract opportunities and buyer relationships. This also helps your organization discover and shape the best options for your company. Your company should maintain a consistent pipeline that tracks all relevant contract information and changes. Government contract leads are available on several paid subscription services, but for those who are just getting started, visit SAM.gov, the official source for federal contracts worth more than $250,000.00 

3. CONNECT WITH CUSTOMERS

In the Federal marketplace, making reoccurring contact with decision-makers in your potential Federal customer base is a best practice. Therefore, it is essential to be knowledgeable of all the key players and know the best way to contact them. Once you have this information, research, research, research! Knowing what your Federal customers buy and how they buy will enable you to connect your product or services to their needs directly. With persistence, this information will help you refine your company’s messaging to grab the attention of decision-makers.

4. EXPLORE SUBCONTRACTING OPPORTUNITIES

It’s not easy to get your foot in the door, but one viable avenue worth consideration is subcontracting. Companies can indirectly serve the government by partnering with prime contractors. Not only is subcontracting a way to connect with a Federal agency you may not have previously worked with, but it is also a great way to expand your portfolio of past performance. One way to effectively pitch yourself as a subcontractor is to offer a cost-saving solution. Pinpointing a niche need your service can fill is also an excellent way to earn a subcontracting role. Once you find a prime contractor that needs what you have to offer, reach out and sell them on your capabilities!

5. DEVELOP A COMPETITIVE BID

Understanding the bid-proposal process is vital to your success as a government contractor, and even more important is having the resources in place to execute it. Build your bid-proposal team and distribute tasks that complement specific skill sets to achieve your overall goal. Once the proper resources are in place, stay compliant with the proposal requirements and bid a cost-competitive proposal. 

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CategoriesGovernment Contracting 101

GSA Schedule – The Basics

Posted on July 22, 2022

U.S.-based businesses have many government contracting options to explore across various domains, including federal, state, local, and tribal. Of course, the Federal Government represents the largest of these domains, given that it’s the world’s largest procurer of goods and services. Furthermore, there are numerous agencies within the Federal Government to contract with, one of the largest being the General Services Administration, or GSA.

What is the GSA?

The GSA is a federal agency that facilitates government-wide contracting. Essentially, they centralize the contracting requirements and deliverables for many federal government agencies. GSA accomplishes this via the Public Building Service (PBS) and the Federal Acquisition Service (FAS). The Public Building Service is often referred to as the landlord of the government. All federal real estate assets are managed through the PBS. On the other hand, the FAS facilitates the acquisition of goods and services.

What are GSA Schedules?

GSA Schedules are long-term contracts under the GSA’s Multiple Award Schedule (MAS) program. A GSA Schedule contract is a time-bound agreement between the federal government and a contractor or an association of vendors. 

The objective of the GSA Schedule program is to simplify acquisition processes to ensure that each designated federal department or agency gets requisite goods and services delivered as per the preset terms. The program provides certainty for the federal government and all its departments that essential goods and services are always available. It’s also designed to ensure acquisitions are executed at fair and reasonable prices. 

List of GSA Schedules

GSA Schedules are not about one-time acquisitions. The deliverables, as decided and agreed upon at the outset, are sequenced over a period of time. Some GSA Schedules may span several years. Currently, there are more than thirty distinct Federal Supply Schedules. 

The most significant Federal Supply Schedules are:

  • financial services
  • professional engineering services
  • travel services
  • logistics
  • information technology, including equipment, software, and services
  • transportation, delivery, and relocation
  • hardware supply
  • office administration, including documents management and imaging
  • professional services
  • scientific equipment and services
  • human capital management
  • office supplies
  • furniture supply and management
  • law enforcement and disaster management, including emergency response
  • facilities management and maintenance
  • automobiles and automotive supplies
  • shipping and packaging, including supplies
  • temporary staffing
  • food services and hospitality
  • buildings, including the procurement of materials

There are many other Federal Supply Schedules. The GSA Schedules program complies with the Federal Acquisition Regulations (FAR). All federal government departments and every eligible contractor must adhere to the FAR to uphold competition requirements, labor laws, socioeconomic requirements, federal trade agreement prerequisites, and other compliance standards. 

GSA Schedule Contract Eligibility

Only eligible businesses can participate in GSA Schedules. The GSA has stipulated minimum requirements for eligibility. The general eligibility criteria for a GSA contract include a minimum of two years in business with financial statements for the same period, measurable and verifiable past performance, and compliance with the Trade Agreement Act, Service Contract Act, and Buy American Act. A business must also be able to abide by current wage rates, approved ordering processes, and required administrative and reporting procedures. 

GSA Schedule Contract Benefits

Relative to other kinds of government contracts, a GSA Schedule Contract can be more lucrative due to the following factors:

  • Federal Supply Schedules are rarely for a short period of time. A typical GSA contract spans months, often years. This provides medium to long-term orders for a business. Hence, a GSA Schedule contract can facilitate business viability and financial sustainability for the contractor. 
  • Only those part of a Federal Supply Schedule can bid for a GSA contract. This implies that you will be competing with businesses like yours, which are already schedule holders. This means that the chances of an unknown contractor outbidding everyone are considerably less. 
  • As a contractor participating in the GSA Schedules Program, you can access many opportunities relevant to your business. You can expand your portfolio as your eligibility permits. There is ample scope for expansion and growth for ambitious enterprises.
  • The GSA Schedules Program represents an additional avenue for expansion and growth for firms already faring well in government contracting or the private sector. 
  • GSA contract management is quite stringent. While GSA vendor support exists, the steep compliance and regulatory requirements can test a contractor’s mettle. As a result, most businesses witness a transformative enhancement in the efficiency and efficacy of their routine operations. 

GSA Schedule Contract Challenges

All business deals have their fair share of benefits and challenges. As such, the GSA Schedules Program, and more broadly, government contracting, is not always an ideal pursuit. Companies must weigh the benefits against the challenges likely to be encountered.

  • Eligibility is a significant hindrance. The number of years in business and financial statements are only a part of the process. Particular GSA contracts may require relevant certifications, which may be costly and time-consuming to obtain. These certifications are typically required for compliance to maintain an acceptable quality of goods or services. 
  • The GSA Schedules Program necessitates various administrative formalities. For instance, firms must prove their past performance. Most contractors do so using the Dun and Bradstreet Open Ratings system. A GSA contract also requires proof of cash flow. Financially unstable businesses, such as those deemed at risk of bankruptcy, are not eligible for the Federal Supply Schedules. 
  • GSA contract management is a considerable commitment. Contractors must deliver as per the terms of the contract and remain in compliance with universal standards for ordering, delivering, administration, and reporting. GSA contract management can be arduous for firms unprepared to deal with the additional administrative burden. 

GSA Schedule contracts are awarded to the best bidder. Every new opportunity must be won. 

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CategoriesBusiness DevelopmentCaptureGeneralGovernment Contracting 101PricingProposal

Types of Federal Contracts

Posted on June 23, 2022

Federal contracts exist broadly between two categories: products/goods and services. The former includes almost everything from food to furniture and medicine to machinery. The latter includes professional services, research and development, management and administration, and consultancy. The majority of federal contracts, by dollar value, are awarded in the following sectors:

  • Facilities and construction, including real estate purchases and leases, building materials and services, etc.
  • Professional services, including financial, legal, public relations, marketing, and technical expertise.
  • Information technology, including hardware, software, consulting, telecommunications, and security, etc.
  • Transportation and logistics, including delivery, motor vehicles, support, and fuel, etc.
  • Medical, including health care services, pharmaceuticals, medical equipment, and consulting, etc.
  • Industrial products and services, including machinery, tools, and maintenance, etc.
  • Security, including state-of-the-art systems and real-time services, etc.
  • Human capital, including educational services and vocational training, etc.
  • Travel and lodging, including event management services and food and beverage supply, etc.
  • Office management and administration, including purchasing furniture and essential supplies, etc.

After classification based on industry sector, product, or service, there is further categorization depending on contract terms:

  • Fixed Price Federal Contracts
    • This type of contract is applicable for both goods and services. Open government contracts of this kind typically invite bids from eligible contractors or vendors. If it is a product, then a specific unit is preset for the pricing— such as by the carton, ton, or some other metric. For services, the pricing is typically per hour. It should be noted that fixed-price federal contracts may have specific clauses that could alter the calculation of billable amounts depending on relevant factors, such as quality or regulatory compliance.
  • Cost Reimbursement based Federal Contracts
    • Federal contracts for typical goods and services are usually fixed-price agreements. Cost reimbursement-based federal contracts are common when a fixed price is difficult to ascertain or predetermine. Research and development services, for example, are difficult to price at the outset. There are myriad variables in such contracts, especially in the deliverables. Hence, a cost-reimbursement policy is pragmatic for contractors and, to an extent, for the government.
  • Time and Materials based Federal Contracts
    • This type of contract is commonly used for services wherein select materials may be requisitioned for the deliverables. The service is billed hourly, and the cost of materials is added for the billable time. There is, of course, a price cap as agreed upon in the bid or proposal. Time and materials-based federal contracts are typical for tasks or operations spanning a relatively short period.
  • Incentive-based Federal Contracts
    • This should not be presumed as a contract that pays only incentives. Instead, it is labeled as an incentive-based federal contract due to a provision. Most incentive-based federal contracts are either fixed-price or cost-reimbursement agreements, with a bonus payable only if a certain quality and compliance standard or other criteria are met.
  • Delivery-based Federal Contracts
    • There are a few types of contracts wherein the deliverables are not precise or wholly defined. The variables in such cases may be time, materials, the type of product or service, and other factors. In these cases, it is practically impossible to have fixed price or cost reimbursement-based contracts. Hence, delivery-based federal contracts are the only feasible option. 

Benefits of Federal Contracts

There are myriad advantages of federal contracts. The most noteworthy benefits are:

  • Financial reliability.
  • The potential for growth and expansion.
  • Enhanced brand value.
  • Long-term business viability.
  • Special advantages.

Financial Reliability

The federal government is a reliable paymaster. Unless there is something seriously wrong with the deliverables, the federal government generally does not delay payments and is consistent as per the billing cycles. Moreover, unlike private or public enterprises, the federal government is not vulnerable to a cash crunch or probable bankruptcy. Hence, companies know they will be paid for their products or services.

Potential for Growth and Expansion

A company can grow and develop its expertise by working on federal contracts. This is primarily due to the stringent regulatory and compliance standards that force businesses to take their business practices to the next level. As a result, most businesses emerge as more efficient organizations after working on a few government contracts. Business expansion also becomes easier when a company starts winning federal contracts due to the infusion of reliable capital. 

Enhanced Brand Value

The importance of having the federal government as a client in a portfolio cannot be overstated. Every industry veteran knows the stringent regulations for federal contracts. If your company has won and delivered on a few federal contracts, your potential clients will be assured that you can and will live up to your commitments.

Long-Term Business Viability

The federal government is never going to be out of business. If your company continues to win federal contracts and deliver the products or services as per the terms, then your business will find its place in subsequent shortlists. The federal government alone can make a private or public business viable in the long term.

Special Advantages

There are federal contracts designed to give advantage to minority-owned enterprises, female entrepreneurs, and others who have been traditionally disadvantaged in various spheres of employment and business. These are called “set asides,” meaning the competition for that work is set aside for those businesses in that category.  

Challenges of Federal Contracts

While you can gain financial viability and grow your business with federal contracts, government contracting is not without its fair share of challenges:

Stringent Rules

As a business, you are undoubtedly familiar with your industry’s regulations. These will be in full effect while working in the federal government space. Additionally, there can be additional regulations or compliance standards for specific government contracts. These rules are quite stringent. Any company vying for federal contracts should be prepared to deal with stringent regulations.

Stiff Competition

Competition is perhaps the most daunting of all challenges concerning open government contracts. You have to prepare well to gain an edge over your competitors. First, you need access to an up-to-date federal contracts database. It also helps to have insights into government procurement contracts to understand what it takes to submit a winning bid.

Red Tape and Bureaucracy 

Red tape and bureaucracy have become more manageable in the last two decades. However, some bureaucrats will still slow down with paperwork, the various processes involved in doing business with the government. You must learn to endure the red tape and bureaucracy if you want to leverage federal contracts.

Intrusive Supervision

In most cases, the government is not unnecessarily intrusive, but businesses must learn to deal with supervision and oversight. On the other hand, intrusiveness can help companies improve their efficacy, efficiency, and compliance, so there is a silver lining.

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CategoriesBusiness DevelopmentCaptureGeneralGovernment Contracting 101PricingProposal

How to Decipher Federal RFP Terminology – A Beginner’s Guide

Posted on June 23, 2022

Identifying federal government contract opportunities can be daunting, especially given the alphabet soup of jargon out there. 

The RFx Spectrum

A government opportunity search may lead you to find an RFP, RFA, RFB, RFI, or RFQ. You may even find an RFT, although the federal government rarely uses it (It’s more common in Europe). RFx is the collective term for the entire spectrum of these acronyms. 

An RFP is a Request for Proposal; RFA, a Request for Application; RFB, a Request for Bid; RFI, a Request for Information; RFQ, a Request for Quotation; and RFT, a Request for Tender. RFPs, RFAs, RFBs, RFQs, and RFTs are all similar in that they are seeking proposals or bids. RFIs, on the other hand, are simply seeking information and do not include a bid element or financial quote. 

Deciphering RFP Terminology

Once you discover an opportunity, you may find the proposal terminology confusing. However, understanding the jargon is key to creating a comprehensive, high-quality proposal response.

There are many terms and phrases used in proposals that are in keeping with their literal meanings. A few common examples are “agreement,” “bid,” “best value,” “period of performance,” “evaluation criteria,” “confidence ratings,” “past performance,” “compliance,” and “assumptions,” among others. However, other terms are not so clear – especially when there are a plethora of acronyms.

Proposal Acronyms

The government uses hundreds of acronyms for their various agencies and proposal types, instructions, pricing details, and performance ratings. 

Once you get through the “alphabet soup” of acronyms, there is no shortage of other confusing terminology you need to understand to formulate your best proposal response. Here are a few common terms used in government proposals:

  • “Issuer” is the issuing authority. Proposals are not always issued by the agency or office seeking the product or service. For example, a government agency may appoint a particular department or outsource the proposal process.
  • “Set-Aside” is where the government limits competition for specific contracts to small businesses and certain types of small businesses, such as Woman-Owned Small Businesses (WOSBs), Veteran-Owned Small Businesses (VOSBs), Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), 8(a), etc. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts.
  • “Executive summary” is a brief overview highlighting the critical elements of a proposal. It is different from a cover letter because it contains a brief synopsis of the salient points in your proposal. Evaluators typically read the executive summary first, and will stop there if not incentivized to read further. Therefore, make it a compelling summary of what is to come in your proposal. 
  • “Lifecycle cost” looks at the total expenditure for a product. It assesses the total cost of an asset over its life cycle, including initial capital, maintenance, and operating costs. A proposed product should have a lifecycle cost lower or up to the current expenditure of the current contract. Otherwise, a government department may prefer an existing contract renewal. 
  • “Spend analysis” is an ongoing assessment analyzing all data related to the procurement. The objective is to enhance efficiency and ensure compliance. Spend analysis is a practice used by both the procurer and the contractor.
  • “Preference” is a set of project-specific advantages available to contractors in a specific location, offering a particular quality of product or service and/or possessing some special business classifications.
  • “Qualified bid” is a proposal response wherein a contractor explicitly exempts itself from the eligibility criteria or prerequisites. This limitation or condition may constitute grounds to disqualify the bid.
  • “Qualified vendor” is a contractor meeting all the prerequisites or eligibility criteria for an opportunity.

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